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Money "We've had continuous, if not terribly robust, economic growth for a couple of years now and a continuously falling unemployment rate," said McGee, who specializes in tax policy, investment Kevin McGee under uncertainty and statistical theory and risk. "Consumer optimism is up so consumers are spending." McGee notes that housing prices have pretty much stopped falling, and in some areas, actually rising. (For the latest information on housing prices, go to http://tinyurl. com/S-P-housing-prices.) "All of that means the level of uncertainty is back down to normal," he explained. "Still, banks have hopefully learned a lesson from the freewheeling days of the housing boom. This will have some effect on lending for home construction." Although the construction industry and the housing market are vertical markets, the credit situation can't fairly be compared. The housing credit situation is an anomaly. "You can't compare commercial lending in equipment to the housing market and the meltdown on Wall Street," said Shute at 1st Source Bank. Mortgage lenders are now "being ultra-careful" with what they do. "Like many others, I've rewritten my mortgage to get a lower rate so I know the [hoops] you have to go through even if you're a good credit risk," Shute said. This means not just providing documentation to a lender, he adds, but the bank then verifying it. "They have gone over-the-top cautious." Equipment Market Has 'Long Runway Ahead' Jim Case, CEO of Ritchie Bros. Financial Services, predicts the equipment market has a "nice long runway ahead of it with businesses continuing to replace their fleets." Case confirms both Crum's and Schute's assertions that plenty of credit is available. Credit approval is close to the percentage as it was preJim Case recession and delinquencies are at a low, Case says. "Through the recessionary times, many lenders were more selective (without changing the lending rules) as to the type of credit they would extend," he explained. "It's that prudent credit mentality that has enabled lenders to run their books in a way that allowed them to be profitable, and that profitability has now allowed them to expand their credit. If you run an equipment finance portfolio at a loss, it will be difficult to attract new capital." (continued on page 55) We're More Committed Than Ever Before. Our commitment to the construction equipment industry hasn't changed. Our team of industry experts creates customized solutions to meet your specific needs because we understand the unique challenges you face every day. We're ready to invest in your future. So, give us a call, or better yet, let us come see you. Come listen to Jim Huntzinger, the executive vice president and chief investment officer for BOK Financial, speak at the 2013 AED/Infor Executive Forum. To learn more, visit www.aednet.org/forum. Lending | Syndication 480.666.8993 | www.bokfinancial.com /committed ©2013 BOK Financial Equipment Finance, Inc. is a subsidiary of BOK Financial Corporation. Member FDIC. Equal Housing Lender September 2013 | Construction Equipment Distribution | www.cedmag.com | 23 20_Credit_Feature_Index_KP.indd 23 8/28/13 12:37 PM